DISCLAIMER

All rights reserved. Links to the blog and its contents are as welcome as quotes from it.

Copyright: Toni Straka, 2005-2011 This blog is for information and entertainment purposes only. Under no circumstances does this information represent a recommendation to buy or sell securities or any other type of investment instruments.

"The risks surrounding this favourable outlook for economic growth are broadly balanced over the shorter term. At medium to longer horizons, the balance of risks remains on the downside, owing mainly to external factors. These relate in particular to fears of a rise in protectionist pressures, the possibility of further increases in oil prices, concerns about possible disorderly developments owing to global imbalances and potential shifts in financial market sentiment."

While inflation has remained a decimal below the ECB's upper target range of 2% the longterm explosion of monetary expansion shows no signs of a slowdown. Monetary supply M3 growth picked up again and rose from 10.4% to 10.7% in May. The ECB's target growth rate for M3 is 4%.Despite the surge in M3 the ECB did not have much of a choice at today's governing council meeting. Europe's economic expansion bases partly on a not too strong Euro as further appreciations of the common currency would hamper export growth. Trichet conceded that the situation of the individula economies of the Euro members present a very varied picture but did not go deeper into that matter.It can be expected that the ECB will stay on hold unless energy prices darken the inflationary outlook again, pushing the official consumer price appreciation beyond the 2% target. This is already the case. Crude oil traded above $72 on Thursday.

0 comments

Wikinvest Wire

Please Enable Javascript for this Precious Metals widget to workPlease Enable Javascript for this Crude Oil widget to workPlease Enable Javascript for this Finance widget to work

EXCERPT FROM THE US CONSTITUTION, Article I, section 10: No State shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts....

FROM THE US TREASURY WEBSITE: "Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. The notes have no value for themselves, but for what they will buy."

A LESSON FROM HISTORY BOOKS: The past 300 years have proven that ALL fiat money experiments ended in complete devaluation. From Rome to Britain: every empire vanished into oblivion soon after it went off the gold standard. It is time to recognize the obvious: Unbacked money has never worked.

Pageviews last 7 Days

About Me

I am an INDEPENDENT Certified Financial Analyst who worked as a financial journalist for 15+ years and now evaluate global market trends. Analyzing financial and political news permanently I want to share my insight with those who understand that we are in an era of global redistribution of wealth. The US-European centric approach does not work anymore. 6 billion people in the developing countries now demand their fair share of the world's resources.
Having worked many years for a leading newswire I have learned to understand the fatal concept of ever expanding credit by heart. If you want to learn about the future of the economy, study history.